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: The major drawback is that annual income can be highly unpredictable, which may be difficult for retirees with high fixed costs.

: The strategy relies on estimated future returns; if the market performs significantly worse than the model's assumptions, spending power could drop drastically. 5. Conclusion VPW.7z.008

: Theoretically, because you are only taking a percentage of what remains, you can never hit a zero balance. : The major drawback is that annual income